The company expects third-quarter 2026 revenue between $255 million and $290 million.
AOI sees third-quarter non-GAAP gross margin of 29% to 30.5%.
The company anticipates steady sequential revenue growth for the rest of 2026.
Overview
The U.S. optical networking supplier's second-quarter revenue slightly beat analyst expectations, marking its fifth straight record.
Non-GAAP net income turned positive and beat analyst expectations.
Strong demand for high-speed optics and 800G products drove results.
Result drivers
800G product ramp - The company said volume of 800G products more than doubled sequentially, driving quarterly results.
CATV product adoption - High-volume adoption of 1.8 GHz CATV products contributed to quarterly performance.
Customer demand outpacing capacity - The company said demand for 800G transceivers and 1.6 Tb products is expected to exceed production capacity through mid-2027.
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell".
The average consensus recommendation for the electronic equipment and parts peer group is "buy".
Wall Street's median 12-month price target for Applied Optoelectronics, Inc. is $127.00, about 1.2% below its August 5 closing price of $128.56.
The stock recently traded at 42 times the next 12-month earnings vs. a P/E of 91 three months ago.
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